First off, I don't wish to be the Debbie Downer, at every Good News party. Anything that promotes a Greener Planet, is fine by me. Even efforts to promote the "Greening of China". Hip, hip, Hurray! Seriously.
China to Purchase $45B in US Exports
By Julie Pace, AP -- Jan 19, 2011
In addition to the Boeing deal, China will also invest in U.S. exports from agriculture, telecommunications and technology companies, including General Electric, Honeywell and Navistar. The White House said the deals will support up to 235,000 jobs in the U.S.
I'm trying to keep an open mind about the many new "Joint Venture" agreements between US Companies and China Companies -- anything that supports Jobs in America, especially those all-important Green Jobs in America, should be a good thing right?
But whenever I see a Big Number being heralded by the press -- I usually wonder:
What is the context for that number?
$45B increase in new US Exports to China -- sounds impressive right?
$45B increase in new US Exports to China -- sounds impressive right?
But, not so much, when you consider the "Bigger Picture" ... if you step back a few steps and look to the horizon ...
US Trade with China : 2010 (census.gov)
$ -252.3B (annual 2010)
All these new agreements should cover about 2 months of our ongoing Trade Imbalance with China. ... Eventually. Maybe. Could happen.
Woo Hoo. Break out the party favors.
I suspect, China sees this is a small price to pay, for all those Open Doors into US Tech, and US Capital. To the US Consumers of the Green 21st Century.
Comp'ing the US with 2 Month of Export credits, is peanuts, if it means more infrastructure, more opportunity, and an improved standard of living for its people.
Afterall Trade is a 2-way street, Right? ... long as the down-hill slope, always favors the right parties. Long as someone makes a huge profit by the deal.
More about the recent Trade-partnering news, some of the behind the scenes details:
China Deals Open Door to U.S. Jobs; Chinese Tech & Markets
GE Reports
With China experiencing one of the largest rural to urban migrations in history, a number of aviation, energy and rail agreements have been signed between GE and China over the last 14 months. During Chinese President Hu Jintao’s visit to Washington this week, updates will be announced on the deals, which are designed to help one of the world’s fastest growing markets meet its infrastructure challenges in sustainable ways -- and to create and support U.S. jobs, provide unprecedented access to Chinese technologies and markets, and generate a new wave of growth for GE.
In terms of jobs, the deals will support nearly 4,500 in the U.S., including those along GE’s U.S. supply chain.
[...]
As GE Chairman and CEO Jeff Immelt underscored when many of the collaborations were first announced, "new global sales will be a direct result of these collaborations, safeguarding and growing U.S. jobs." In its story, Bloomberg notes that GE’s China sales are rising at about 20 percent annually and should grow in the "high double-digits" in 2011.
Here's that Bloomberg report, about tapping the 20% Growth market in China:
GE Plans to Announce Projects in China Yielding $2.1 Billion in Revenue
By Rachel Layne, Bloomberg -- Jan 18, 2011
"Clean energy, we think, represents America’s best opportunity to maintain global technology and innovation leadership," Wilson said. "We hope to sustain jobs and exports for our technology."
Creating Jobs
GE also announced a venture with Shenhua Group Corp. to develop so-called clean-coal technology, which turns coal into cleaner-burning gas, for commercial-sized facilities. The business, which may generate $150 million in revenue in five years, will develop technology in both countries, creating jobs in China as well as Texas, South Carolina and New York state.
China may spend about 5 trillion yuan ($750 billion) in the next decade developing cleaner sources of energy, the government said in July, and GE has agreed to form other ventures that will tap that growth, including one with Harbin Power Equipment Co. for wind turbines and State Grid for smart-grid technologies.
Like l said, I'm glad that "China is going Green".
Just not so glad that "GE and others, are going SO China."
GE Announces Five New Cooperation Agreements with Chinese Partners
-- Totaling More than $2 Billion in Revenue and Creating U.S. Jobs
businesswire.com
* Exports from U.S. to total more than $1 billion
* Energy, rail and aviation initiatives to support more than 4,500 U.S. jobs
The five joint ventures, partnerships and orders in strategic sectors such as clean energy, aviation and rail transportation are expected to generate more than $1 billion in exports from the U.S. and create or support jobs in both countries, including more than 4,500 U.S. jobs.
-- A joint venture between GE Energy and Shenhua Group Corporation [...]
It will also support job creation in the United States and China, including hundreds of jobs in Houston, Greenville, SC; and Schenectady, NY.
-- A collaborative agreement between GE Energy and China Huadian Corporation to develop distributed energy combined heat and power (DECHP) projects, which are expected to become the most efficient natural gas solutions for China [...]
This will support more than 2,100 jobs throughout GE’s domestic U.S. supply chain.
-- A joint venture between GE Aviation and Aviation Industry Corporation of China (AVIC) to develop and market the new generation of avionics systems with an immediate priority on supporting development of China’s first home-grown big passenger jet.
[...]
support at least 300 high-tech jobs in each of the United States and China.
-- A Letter of Intent signed by GE Transportation with the Ministry of Railways (MOR) to provide $350 million worth of U.S.-built locomotives [...]
The export order could support 2,000 U.S. jobs.
-- A Letter of Intent signed by GE Transportation with the MOR to reaffirm both parties’ intent to collaborate on High-Speed Rail (HSR) and electric rail opportunities in North America.
The partnership represents a joint investment of approximately $50 million with the potential to support 250 U.S. jobs by 2012 for the first phase of the agreement.
GE is pursuing the Green. I'm glad they're still "throwing a bone" to US Workers though, those in their "Supply Chain"
4,500 US GE Jobs saved. Woo Hoo! [That's 4 thousand -- with a "T"]
Question 1: "Supply Chain" to which consumer market?
Question 2: How many Chinese Jobs, were saved? ... or just created from scratch? ... from all this behind-the-scenes wheeling and dealing.
Of course GE is not alone, in wanting to tap this Green Frontier Growth Market overseas, with our new "best buddy" from the G-20.
FACT SHEET: U.S.-China Commercial Relations
beforeitsnews -- January 19, 2011
-- Boeing Airplane Sales: China's agreement to approve airline contracts for 200 orders covers aircraft to be delivered over a three-year period, 2011-2013. [...]
the agreement help supports more than 100,000 American jobs
-- GE and China South Locomotive & Rolling Stock Corporation Limited (CSR) plan to form a joint venture in the United States to manufacture high- and medium-speed electric multiple unit trains.
GE estimates that new business generated by the HSR JV could support up to 3,500 jobs in the United States.
-- Navistar Inc.-- JAC Truck and Engine Joint Ventures: Navistar has announced central Chinese government approval for a $400 million, 50-50 joint venture with the state-owned Anhui Jianghuai Automobile Company (JAC). [...]
Navistar estimates the net employment benefit of the joint ventures to the United States economy at 200 jobs in the United States, mainly in the field of engineering and other services.
-- General Electric is signing a Joint Collaboration Agreement with China Huadian Engineering Co., Ltd [...]
supporting over 200 jobs in the United States.
-- General Electric-AVIC Avionics Joint Venture Agreement: GE and AVIC will sign an agreement to form a new joint venture company to market globally advanced avionics systems for future commercial aircraft.
The GE-AVIC joint venture is expected to support 300 high-tech jobs in Michigan and Florida.
-- Cummins Hybrid Bus Development and Commercialization: Cummins, Inc (Cummins; Columbus, Indiana) and Zhengzhou Yutong Bus Compay [...] This will be the first partnership of its kind involving Cummins hybrid power systems and a major vehicle manufacturer.
Cummins claims that up to 500 jobs could be created in the U.S. related to production, sales, and service of hybrid systems for commercial vehicles for the U.S. and Chinese markets.
-- UPC Management Wind Power Agreements: UPC Management, LLC (UPC) is a Miami, Florida based wind power developer, having interests in 24 sites in 12 Chinese provinces. [...]
Under the SFA [Strategic Framework Agreement], CGD and UPC will form ventures leading to the establishment of wind power generation joint ventures.
[more ...]
Saving US jobs is a good thing. Promoting Green Jobs is a good thing.
I just thought that when US Companies finally started Going Green -- that a lot more of those Green Jobs, would be created here in America, where we could "use the work" ...
Employment Situation Summary
U.S. Bureau of Labor Statistics -- Jan 7, 2011
The number of unemployed persons decreased by 556,000 to 14.5 million in December, and the unemployment rate dropped to 9.4 percent. Over the year, these measures were down from 15.2 million and 9.9 percent, respectively.
so Officially:
14.5 million US citizens out of work, that's the bigger context number for the
"4,500 U.S. jobs" that GE will be saving with all their new China Joint Agreements.
Hip hip, hurray.
14,500,000 US citizens out of work;
THAT is OUR context for ...
235,000 jobs in the U.S, that all these new China "deals will support" ... will someday net us, according to that intro quote, from the White House Press Release.
Eventually. Maybe. Could happen.
I'd say that is about 14 million U.S. Jobs, Too short. When we asked for Green Jobs, we were expecting more of them to be over here, in good ole U. S. of A.
Go figure. Gotta go where the greener pastures are, I guess. That's the American Way, right?
Good news for China though. Good news for the lucky shareholders of those "Joint-Venture" Corporations, too.
Afterall, 20% annual growth is nothing to sneeze at. It's something that Companies covet, plan for, and bargain for. Even move their Operations overseas, for.
Given the opportunity, of course.